Brief Exercise BE21-4
Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the first 2 quarters of 2010 are as follows. Unit Sales
ProductQuarter 1Quarter 2
No changes in selling prices are anticipated.
Complete the sales budget for the 2 quarters ending June 30, 2010. List the products and show for each quarter and for the 6 months, units, selling price, and total sales by product and in total. ZELLER ELECTRONICS INC.
For the Six Months Ending June 30, 2010
ProductUnitsSelling PriceTotal Sales
Moreno Industries has adopted the following production budget for the first 4 months of 2011. MonthUnitsMonthUnits
Each unit requires 3 pounds of raw materials costing $2 per pound. On December 31, 2010, the ending raw materials inventory was 9,000 pounds. Management wants to have a raw materials inventory at the end of the month equal to 30% of next month's production requirements. Complete the direct materials purchases budget by month for the first quarter. MORENO INDUSTRIES
Direct Materials Purchases Budget
For the Quarter Ending March 31, 2011
Units to be produced10,0008,0005,000
Direct materials per unit× 3× 3× 3
Total pounds needed for production30,00024,00015,000...